Mukesh Ambani’s Reliance Retail has achieved a cash break-even with earnings before depreciation, interest and tax (EBDIT) of Rs 78 crore in financial year 2013, but 27 of its retail arms have a combined loss of Rs 271 crore at the net level (profit after tax) in FY13, according to Reliance Industries Ltd’s (RIL) 2012-13 annual report.
The retail venture of RIL posted a jump of 42 per cent in revenues at Rs 10,800 crore for FY13 as compared to Rs 7,599 crore in FY12.
Losses at Reliance Brands, which has agreements with global brands such as Diesel, widened from Rs 18.7 crore in FY12 to Rs 23.45 crore in FY13. Reliance Fresh, which runs convenience stores, posted a loss of Rs 54.78 crore in FY13 as against Rs 273.8 crore in FY12.
Reliance Dairy Foods, Reliance Food Processing Solutions made losses of Rs 23.24 crore and Rs 62.82 crore, respectively. However, Reliance digital Retail posted a profit of Rs 0.64 crore in FY13 as compared to a loss of Rs 55.1 crore in the last financial year.
Reliance said digital would be one of the growth verticals for the company and it would launch Reliance Digital and Digital Express stores in tier I and II cities.
In the last financial year, the company opened 46 digital stores.
According to RIL annual report, its value formats and others grew at compounded annual growth rate of 19 per cent, digital at 76 per cent, fashion and lifestyle at 45 per cent, jewellery at 57 per cent and Brands at 82 per cent.During the last financial year, the company added 184 stores across format sectors and now operates a total of 1,466 stores spanning 129 cities across India covering an area of over 9 million square feet.
The retail business witnessed same store sales growth ranging from 7 per cent to 18 per cent across various format sectors over last year, it said.Same store sales growth refers to growth coming from stores which are in the business for a year of more.
Private label sales represented 9 per cent of revenues for value formats, it said.